India is not immune to potential market jitters on account of interest rate hike by the US Fed, but favourable economic growth outlook makes it attractive for foreign investors, Fitch Ratings today said.


The country's less dependence on exports and improved external balances make it better placed than many of its peers, it said.


"India is not immune to potential general emerging market jitters related to the Fed lift-off, but it is better placed than many of its peers for a number of reasons," said Thomas Rookmaaker, Director, Sovereign Ratings, Fitch Ratings.


The US Federal Reserve had last night hiked interest rates by 0.25 per cent. This is the first hike in about a decade, signalling a recovery in the US economy. "India's favourable economic growth outlook makes India relatively attractive for foreign investors," he said.


India Ratings and Research, a Fitch Group company, said the interest rate hike by the Federal Reserve is a welcome sign of normalisation in the US economy and will augur well for domestic financial markets like forex and bonds.